Millions of Americans are set to see a significant increase in their Social Security payments for the rest of April and May 2025. This increase comes as a result of the Social Security Fairness which was recently signed into law and aims to provide fairer and equitable benefits to government employees as well as other eligible beneficiaries.
The Social Security Fairness Act: An Overview
- Elimination of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO)
The Social Security Fairness Act, signed into law by former President Joe Biden in January 2025, eliminates the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions had reduced Social Security benefits for over 3.2 million government employees in the past. These included teachers, firefighters as well as other federal employees.
By eliminating these provisions, the Act aims to provide fair benefits to all those who have dedicated the most part of their employment to public service.
- Increased Monthly Benefits
Due to the Social Security Fairness Act, many beneficiaries will see an increase in their monthly benefits starting April 2025. For retired workers, the average increase is expected to be approximately $360 per month, while spousal beneficiaries can expect an increase of $700 per month.
- Retroactive Payments
Additionally, eligible beneficiaries will also receive retroactive payments that will cover payments from January 2024 to March 2025.
These will be one-time payments which will be paid directly into beneficiary’s bank accounts and are intended to compensate for the benefits that they should have received. The average retroactive payment is estimated to be approximately $6,710.
Impact on Beneficiaries
- Financial Relief for Public Sector Workers
The elimination of these two provisions is aimed to provide financial relief to many government employees who have been unfairly affected. Many retirees who worked in jobs that were not covered by Social Security will not receive full benefits to which they are entitled.
- Enhanced Support for Surviving Spouses
Surviving spouses who were previously disadvantaged due to the GPO will also benefit from the Fairness Act. These individuals will see an increase in benefits based on their deceased spouse’s employment record which will indeed provide them with greater financial support.
- Broader Implications for Social Security
The changes that are brought as a result of the Social Fairness Act have broader implications for the Social Security System as a whole. The Act is meant to ensure that beneficiaries receive the benefits which they are entitled to receive. By addressing all the inequities of the past, the Act aims to ensure that benefits are distributed fairly and equitably.
What Beneficiaries Need to Do
- Monitor Your Payments
Beneficiaries must ensure that they monitor their Social Security payments closely, to ensure that they receive the accurate payment. The increased in payments as well as retroactive payments should reflect in your bank accounts starting in April. Should there be any discrepancies, beneficiaries must contact the Social Security Administration (SSA) for assistance as soon as possible.
- Stay Informed
It is important for beneficiaries to stay informed and updated about any further changes to Social Security so that they are able to make informed and proactive decisions regarding their benefits.
- Plan for the Future
The increased benefits and retroactive payments may overwhelm beneficiaries therefore it important to plan how to manage benefits in advance so that you don’t overspend money. Make sure you use the money for important things such as paying off debt or savings and investment.
Conclusion
This increase in Social Security payments for the rest of April and May 2025 is a positive for millions of Americans. The Act has brought about important changes that provide fairer benefits to all eligible beneficiaries.